We need to draw the
distinction between computer preparation of tax returns
and e-filing of tax returns.
The opposite of computer
prepared tax return is the hand prepared tax return.
The first uses the computer for preparing the return,
and the second uses a paper form which the tax preparer
or tax payer fills in using a pen or pencil or with the
aid of calculators, mental arithmetic, or fingers and
toes. :-)
The opposite of e-filing
is paper filing. E-filing state for
Electronic-Filing. An E-filed return is one in
which the information on the return is transmitted by
computer to the IRS and the State Taxing authority.
A paper-filed return is one in which the physical paper
is mailed to the IRS or the State Taxing authority.
As you can imagine, a
computer prepared return can be easily e-filed, and it
can also be printed out and filed as a paper return.
A hand prepared return must obviously be mailed in; to
try to e-file a hand prepared return it must first be
converted to a computer prepared return.
An E-File site is one where returns
can be transmitted electronically to the IRS. The computer could be, but does not
need to be, connected to the internet during preparation of
the return. As described above, the return must be
computer prepared.
A site that does not offer E-File services
is one where TaxPayers do not have the option of filing
their returns electronically. The return may be hand
prepared if it is simple, or computer prepared if it is
complex.
Most E-File sites offer the option of
paper or electronic filing to the Taxpayer. A few
sites designated as "E-File ONLY" will prepare returns
only for Taxpayers who agree to have their returns filed
electronically if the return qualifies for electronic
filing.
There are a small number of
sites that will hand prepare tax returns. Some
taxpayers do not want their information to touch a
computer, but unless they are the most trivial and
simplest returns, doing it by hand makes it very
error-prone. Other taxpayers are happy to have
their return prepared on the computer, but want to mail
the return in themselves. As expected, hand
prepared tax return sites are slowly becoming extinct.
Not all returns can be filed
electronically. Examples of such returns include
those with W-2s not generated by computer, or where the
dependent has been claimed as a dependent in another
return. In such situations, the Site
Coordinator makes the final decision on whether or not the
return will be prepared.
